1. Chapter 33 Creditors, Debtors, and Bankruptcy
10/29/2017
Chapter 33 Creditors, Debtors, and Bankruptcy
33-1 Legal Protection of Creditors
33-2 Legal Protection of Debtors and Credit Card Users
33-3 Bankruptcy
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LAW

2. 33-1 Legal Protection of Creditors
GOALS
Recognize the value of a security interest
Contrast a secured loan with an unsecured loan
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3. LAWS THAT PROTECT CREDITORS
Laws allowing secured debts
Pledges
Involuntary liens
Laws involving third parties
Suretyship
Guaranty
Laws concerning unsecured debts
Laws allowing garnishment of wages
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4. What is the primary difference between a surety and a guarantor?
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5. 33-2 Legal Protection of Debtors and Credit Card Users
GOALS
Discuss the various areas of debtor protection available under the law
Relate the protections afforded credit card users under the law
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6. DEBTOR PROTECTION Laws setting maximum interest rates
Laws requiring disclosure of terms
Laws challenging unconscionable contracts
Laws prohibiting abuses in the credit system
Laws requiring notice of debt payment to be recorded
Laws allowing debtors to cancel debts and start over
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7. LAWS PROHIBITING ABUSES IN THE CREDIT SYSTEM
Federal Equal Credit Opportunity Act
Federal Fair Debt Collection Practices Act
Federal Fair Credit Billing Act
Federal Fair Credit Reporting Act
Credit Repair Organizations Act
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8. Name at least four of the six approaches the law takes to protect debtors.
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9. PROTECTIONS FOR CREDIT CARD USERS
Issuer of card specifies the limit of available credit
Cardholder is liable for all purchases
Liability limited under certain conditions
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10. What is the liability limit for unauthorized credit card charges?
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11. 33-3 Bankruptcy
GOALS
Differentiate between the various types of bankruptcy filings
List the stages of the Chapter 7 bankruptcy procedure
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12. THE BANKRUPTCY ACT Chapter 7 Liquidation, or “straight bankruptcy”
Reorganization
Chapter 12
Debt relief for family farms
Chapter 13
Extended time payment plan
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13. Of the various bankruptcy plans, which one involves total liquidation of the debtor’s nonexempt assets?
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14. BANKRUPTCY PROCEDURE UNDER CHAPTER 7
The bankruptcy petition
Voluntary bankruptcy
Involuntary bankruptcy
Required informational filing
Selection of the trustee in bankruptcy
Non-dischargeable debts
Exempt property
Liquidation and distribution of proceeds
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15. What are the two types of bankruptcy under Chapter 7?

16. PREVENT LEGAL DIFFICULTIES
Be wise about credit . . .
In applying for credit, always be accurate and honest. Lies about one’s credit history are often exposed.
If you give property as security for a debt, be sure it is returned or properly released when the debt is paid.
Continued on the next slide
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17. PREVENT LEGAL DIFFICULTIES
Protect your rights as a debtor by learning about them and exercising them when appropriate. The Fair Credit Reporting Act, Fair Credit Billing Act, Equal Credit Opportunity Act, Fair Debt Collection Practices Act, and related statutes are of limited value without consumer demand for their enforcement.
Continued on the next slide
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18. PREVENT LEGAL DIFFICULTIES
A person who repairs your television, watch, car, or other personal property can exercise an artisan’s lien on the property, retaining possession until paid, or eventually selling the goods. Before work is begun get a detailed written estimate of anticipated cost.
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